March 21, 2022
By Sharan Kaur Phillora
Australia plans to move towards regulating cryptocurrency after the government promised the biggest overhaul of the nation’s payment systems since the early days of the internet, according to Herald Sun.
Here’s what we know:
- A framework for cryptocurrency taxation, guidelines, and protections for investors from suspicious dealers, and methods of regulating digital banks, crypto exchanges, and brokers are all on the table for discussion under the proposed changes.
- “The government can’t guarantee your crypto any more than it can guarantee a painting or a share in a company, and nor should it,” Financial Services Minister Jane Hume said on Sunday.
- “But we can make sure Australian exchanges, custodians and brokers – Australian players in the crypto ecosystem – work within a regulatory framework that is better, safer and more secure.”
- The government also stated the release of three key documents including a paper seeking the industry’s views on approaches to the development of a licensing and custody regime for digital assets. as it is seeking to implement many of the reforms by the end of this year.
- The Council of Financial Regulators (CFR) and the Australian Competition and Consumer Commission have been tasked with examining “de-banking” in the digital realm of fintech before it presents a final paper.
- The Board of Taxation (BoT) is expected to review an appropriate policy framework for the taxation of digital transactions and assets in Australia, reporting to the government by the end of this year.
About the author
Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.